News
Advance Synergy Berhad ("ASB") - E-commerce Ventures By A 51% Owned Subsidiary Of ASB, Isynergy Sdn Bhd ("Isynergy") (Formerly Known As Synergy Card & Payment Services Sdn Bhd) And Its Subsidiaries ("Isynergy Group")
BackJul 07, 2000
| General Announcement Reference No CU-000707-35308 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 07/07/2000 |
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| Type | : | Announcement |
| Subject | : | ADVANCE SYNERGY BERHAD ("ASB") - e-commerce ventures by a 51% owned subsidiary of ASB, iSynergy Sdn Bhd ("iSynergy") (formerly known as Synergy Card & Payment Services Sdn Bhd) and its subsidiaries ("iSynergy Group") |
Contents :
1.0INTRODUCTION
The Board of Directors of ASB is pleased to announce that iSynergy Group will embark on e-commerce ventures through the internet. iSynergy Group will develop and launch four (4) e-commerce portals within this year.
The e-commerce portals will complement and expand on the existing principal activities of the iSynergy Group in the sales and marketing of payment and loyalty related products and services which include the issuance of credit card (namely, MasterCard) and sale of discount card (namely, Gateway Discount) and other loyalty card products (namely, Cash-In Rebate and GrandHost Rewards).
The rebound in Malaysia's economy signals an opportunity for iSynergy to capitalise on its unique strengths (a large active cardmembership base, a high transaction activity base, a complete infrastructure to support these transactions, a large established network of quality merchants giving good discount, rebates and reward to its cardmembers and a strong management team) to exploit the growing internet business potential.
The e-commerce portals will complement and expand on the existing principal activities of the iSynergy Group in the sales and marketing of payment and loyalty related products and services which include the issuance of credit card (namely, MasterCard) and sale of discount card (namely, Gateway Discount) and other loyalty card products (namely, Cash-In Rebate and GrandHost Rewards).
The rebound in Malaysia's economy signals an opportunity for iSynergy to capitalise on its unique strengths (a large active cardmembership base, a high transaction activity base, a complete infrastructure to support these transactions, a large established network of quality merchants giving good discount, rebates and reward to its cardmembers and a strong management team) to exploit the growing internet business potential.
2.0 INFORMATION ON THE E-COMMERCE PORTALS
The four e-commerce portals to be launched by iSynergy Group include:-
(i) rewardstreet.com.my
A virtual mega shopping street where Malaysian Cash-In Rebate and GrandHost Merchants who sell goods and services to the public, are accommodated. The portal will include storefronts for each Merchant, shopping carts, payment gateways, delivery services and other related services required to complete transactions. A browser (from any part of the world) may view any page in rewardstreet.com.my and make purchases via credit cards or debits to a bank account. The payment gateways provided use MOSET (Merchant Only Secured Electronic Transaction) or other approved methods of secured transactions to protect the buyer. Goods and services are then delivered by the Merchant. The portal targets millions of browsers and will eventually house thousands of Merchants to satisfy their needs.
Members of Cash-In Rebate Cards or GrandHost Reward Cards will receive rebates for purchases in rewardstreet.com.my as they do in the conventional brick and mortar way currently.
(ii) cosmocourt.com.my
This is a mega virtual store that features a comprehensive array of goods and services for Malaysian home makers. All items featured are sold on easy payment terms of up to 36 equal monthly repayments. Items offered will include electrical appliances, audio visual products, computers and other electronic goods, furniture and fittings and other durables. cosmocourt.com.my will be featured in rewardstreet.com.my. As such, Cash-In Rebate Cardmembers and GrandHost Reward Cardmembers who keep their repayments current will enjoy special rebates of interest charged. Qualified customers of cosmocourt.com.my will be given credit limits within which they can make purchases on instalment. This allows for one or more purchase transactions on easy payment so long as the credit limit is not exceeded.
As with rewardstreet.com.my, cosmocourt.com.my features secured payment gateways, delivery services and other facilities to ensure customer satisfaction. It will target those in the lower to middle income groups. It will compete with other brick and mortar easy payment stores.
(iii) t2texchange.com.my
(i) rewardstreet.com.my
A virtual mega shopping street where Malaysian Cash-In Rebate and GrandHost Merchants who sell goods and services to the public, are accommodated. The portal will include storefronts for each Merchant, shopping carts, payment gateways, delivery services and other related services required to complete transactions. A browser (from any part of the world) may view any page in rewardstreet.com.my and make purchases via credit cards or debits to a bank account. The payment gateways provided use MOSET (Merchant Only Secured Electronic Transaction) or other approved methods of secured transactions to protect the buyer. Goods and services are then delivered by the Merchant. The portal targets millions of browsers and will eventually house thousands of Merchants to satisfy their needs.
Members of Cash-In Rebate Cards or GrandHost Reward Cards will receive rebates for purchases in rewardstreet.com.my as they do in the conventional brick and mortar way currently.
(ii) cosmocourt.com.my
This is a mega virtual store that features a comprehensive array of goods and services for Malaysian home makers. All items featured are sold on easy payment terms of up to 36 equal monthly repayments. Items offered will include electrical appliances, audio visual products, computers and other electronic goods, furniture and fittings and other durables. cosmocourt.com.my will be featured in rewardstreet.com.my. As such, Cash-In Rebate Cardmembers and GrandHost Reward Cardmembers who keep their repayments current will enjoy special rebates of interest charged. Qualified customers of cosmocourt.com.my will be given credit limits within which they can make purchases on instalment. This allows for one or more purchase transactions on easy payment so long as the credit limit is not exceeded.
As with rewardstreet.com.my, cosmocourt.com.my features secured payment gateways, delivery services and other facilities to ensure customer satisfaction. It will target those in the lower to middle income groups. It will compete with other brick and mortar easy payment stores.
(iii) t2texchange.com.my
This is a business-to-business trade exchange that will allow Members (who are qualified Malaysian business entities) to barter their goods and services with each other over the net. Members are initially given credit limits to buy things at t2texchange Members' virtual stores. Purchases are recorded as debits in their accounts kept by iSynergy. These debits are then offset by credits when the Member then sells items to other Member. In the ideal situation, Members need not pay cash for purchases if they balance their debits with corresponding credits. They will only need to pay t2texchange.com.my for service fees which are charged to buyer and seller for each completed transaction.
t2texchange.com.my will target small to medium size businesses who see the benefits of turning over stocks at a faster rate and keeping cashflow at reduced levels. It will feature a proprietary secured payment gateway to ensure integrity of transactions for the assurance of the Members.
(iv) eofficemart.com.my
This is a virtual store featuring Concessionaires who offer a comprehensive range of office equipment, furniture, computers and peripherals, stationery and other relevant items for offices. Each of the local companies wishing to buy from eofficemart.com.my will be assigned a credit limit. They will be allowed to purchase items up to that limit and be invoiced on a monthly basis. Besides the convenience and speed of a one-stop store, companies do not have to administer payments to multiple suppliers. Concessionaires are also assured of prompt payment from eofficemart.com.my upon delivery of goods to the client.
3.0 SOURCE AND NATURE OF REVENUEt2texchange.com.my will target small to medium size businesses who see the benefits of turning over stocks at a faster rate and keeping cashflow at reduced levels. It will feature a proprietary secured payment gateway to ensure integrity of transactions for the assurance of the Members.
(iv) eofficemart.com.my
This is a virtual store featuring Concessionaires who offer a comprehensive range of office equipment, furniture, computers and peripherals, stationery and other relevant items for offices. Each of the local companies wishing to buy from eofficemart.com.my will be assigned a credit limit. They will be allowed to purchase items up to that limit and be invoiced on a monthly basis. Besides the convenience and speed of a one-stop store, companies do not have to administer payments to multiple suppliers. Concessionaires are also assured of prompt payment from eofficemart.com.my upon delivery of goods to the client.
With the launch of the above four portals, iSynergy Group will be in a position to tap the following revenue streams :-
(i) Rental of Space
Additional space (over and above a certain amount of space provided free) to house the storefronts of Merchants, Concessionaires and t2texchange Members will be charged at rates to be determined.
(ii) Advertising Revenue
(i) Rental of Space
Additional space (over and above a certain amount of space provided free) to house the storefronts of Merchants, Concessionaires and t2texchange Members will be charged at rates to be determined.
(ii) Advertising Revenue
Pages within each portal will attract advertisers to place their banners or icons. Revenues rates yet to be finalised.
(iii) Payment Gateway Transaction Fee
There will be a small fee per transaction, charged to merchants when the standard shopping cart is used. Rate to be finalised.
(iv) Concession Fee
Merchants and Concessionaires will be charged concession fees based on the transaction amount. This concession fee will be waived if the Merchant grants a Cash-In Rebate or GrandHost Reward on that particular transaction.
(v) Trade Exchange Transaction Fee
Members of t2texchange.com.my will be charged a Purchase Transaction Fee of 5% on the purchase amount (payable in cash) and a Selling Transaction Fee of 5% on the sale amount (payable through debit to the Trade Credit Account).
(vi) Cash-In Rebates or GrandHost Rewards
As is the case in the current brick and mortar scenario, iSynergy Group earns 30% - 50% of the rewards or rebates granted by Cash-In and GrandHost Merchants in rewardstreet.com.my and cosmocourt.com.my (in the case of Cash-In, the Cardmember is entitled to 50% of the rebate given whereas, the GrandHost Reward Cardmember is entitled to 70% of the reward granted).
(vii) Annual Fees
Cash-In Rebate and GrandHost Reward Cards issued via rewardstreet.com.my will generate additional annual fees. Similarly annual membership fees will be charged to t2texchange.com.my Members.
(iii) Payment Gateway Transaction Fee
There will be a small fee per transaction, charged to merchants when the standard shopping cart is used. Rate to be finalised.
(iv) Concession Fee
Merchants and Concessionaires will be charged concession fees based on the transaction amount. This concession fee will be waived if the Merchant grants a Cash-In Rebate or GrandHost Reward on that particular transaction.
(v) Trade Exchange Transaction Fee
Members of t2texchange.com.my will be charged a Purchase Transaction Fee of 5% on the purchase amount (payable in cash) and a Selling Transaction Fee of 5% on the sale amount (payable through debit to the Trade Credit Account).
(vi) Cash-In Rebates or GrandHost Rewards
As is the case in the current brick and mortar scenario, iSynergy Group earns 30% - 50% of the rewards or rebates granted by Cash-In and GrandHost Merchants in rewardstreet.com.my and cosmocourt.com.my (in the case of Cash-In, the Cardmember is entitled to 50% of the rebate given whereas, the GrandHost Reward Cardmember is entitled to 70% of the reward granted).
(vii) Annual Fees
Cash-In Rebate and GrandHost Reward Cards issued via rewardstreet.com.my will generate additional annual fees. Similarly annual membership fees will be charged to t2texchange.com.my Members.
4.0FUNDING REQUIREMENTS AND RETURNS
In terms of additional capital and set up costs, these will be minimal as iSynergy is concluding agreements with two internet partners namely Web Venture Sdn Bhd and Mesiniaga Berhad, a public listed company.
Web Venture Sdn Bhd, a subsidiary of CyberGen Sdn Bhd will provide the hardware and software requirements to design and house storefronts and provide the shopping cart and payment gateway facilities. Mesiniaga Berhad, through its business unit called NiagaNet will provide e-commerce consolidator services. This includes comprehensive bill presentation and bill payment facilities. NiagaNet will post iSynergy's invoices and statements on the Net and customers can make payments to iSynergy via the Net with their credit cards or debit their bank accounts.
The agreements with Web Venture Sdn Bhd and Mesiniaga Berhad will include cost and revenue sharing clauses.
As most of the costs are incremental to iSynergy Group on a variable basis depending on transaction volume, the financial risks will be very minimal.
iSynergy Group intends to launch at least one portal by the 3rd Quarter of this year with the others to be launched in quick succession. As it expects e-commerce transactions to build momentum over at least a 2-year period, it does not anticipate any significant contribution to its bottom line until the 3rd year of the launch of its portals.
(This announcement is dated 7 July 2000)
Web Venture Sdn Bhd, a subsidiary of CyberGen Sdn Bhd will provide the hardware and software requirements to design and house storefronts and provide the shopping cart and payment gateway facilities. Mesiniaga Berhad, through its business unit called NiagaNet will provide e-commerce consolidator services. This includes comprehensive bill presentation and bill payment facilities. NiagaNet will post iSynergy's invoices and statements on the Net and customers can make payments to iSynergy via the Net with their credit cards or debit their bank accounts.
The agreements with Web Venture Sdn Bhd and Mesiniaga Berhad will include cost and revenue sharing clauses.
As most of the costs are incremental to iSynergy Group on a variable basis depending on transaction volume, the financial risks will be very minimal.
iSynergy Group intends to launch at least one portal by the 3rd Quarter of this year with the others to be launched in quick succession. As it expects e-commerce transactions to build momentum over at least a 2-year period, it does not anticipate any significant contribution to its bottom line until the 3rd year of the launch of its portals.
(This announcement is dated 7 July 2000)